1997 (5) TMI 188

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....ector, the assessee had placed besides the evidence on record, another affidavit from Shri Kameshwar Prasad Nautiyal, Design Engineer of the assessee. Among other things the affidavit clarified that whereas a cigarette making machine of mark V Range consisted of over 3000 components, a cigarette making machine M.K. 8 range had over 4000 components. The appellants had further clarified that this process of overhauling, reconditioning and fitment of 5-8-5 kit to the mark V machine, only about 500 to 600 parts are replaced and replacement of so many parts becomes necessary in view of the fact that all the machines in mark V range are over forty years old. In that view, the Collector has concluded that the replacement and renovation of old part....

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....er 3000 components and the replacement of 500 to 600 parts does not amount to manufacture bringing into existence a new commodity. The learned Advocate filed a list of merely 28 authorities in support of his contention that reconditioning/renovation does not amount to manufacture. In the list of citations, we note 3 Supreme Court's Judgments as noted under:- 1. P.C. Cherigan v. Barfi Devi [1979 (4) E.L.T. (J 593) (S.C.)] wherein the Hon'ble Supreme Court has held that retreading of old tyres (complete transformation is a must for manufacture) does not amount to manufacture of a new commodity. 2. Allenburry Engineers Pvt. Ltd. v. Rama Krishna Dalmia & Ors. [1973 (2) SCR 257] Reconditioning and repairing of old vehicles do not amo....